Private Property Rights and Eminent Domain

Eminent domain refers to the process by which the government may seize private property with proper compensation, but without the owner’s consent. The Fifth Amendment to the Constitution stipulates:

that the property must be claimed for “a public use;” and,

that "just compensation" must be provided to the property owner.

In order to claim eminent domain over a property for the purposes of economic development, the government must establish that the property is “blighted." For more information on eminent domain, see NAR's issue summary on the subject.